Alchemix
About
Alchemix is a DeFi platform offering three interconnected products: Mix-Yield Tokens for passive exposure to DAO-curated yield strategies, self-repaying loans that allow borrowing up to 90% LTV without interest, and a Transmuter for fixed-yield redemptions with defined timelines. It provides credit, yield, and redemption mechanisms that support each other in a single ecosystem.
Where Does Yield Come From?
Alchemix generates yield through three main pathways:
Mix‑Yield Tokens (MYT) collect returns from a mix of lending and staking strategies on other platforms—like Euler, Aave, Yearn, TokeAuto, Fluid, and wstETH staking. The Alchemix community (the DAO) chooses how much goes into each strategy and rebalances those allocations over time.
Self‑repaying loans allow you to borrow alETH or alUSD using MYT as collateral. The future earnings from that collateral automatically pay down your loan over time. This creates an “interest‑free” loan because the yield repays the borrowed amount instead of charging interest.
The Transmuter provides a fixed return. You deposit alETH or alUSD and later redeem the real underlying asset (ETH or USDC) at a 1:1 rate after a fixed maturity period. Your yield is locked in when you deposit, based on the discount between the price you pay for the alAsset and its target value. For example, buying alUSD for 0.98 USDC with a three‑month wait gives roughly an 8% annualized return.
The system uses a temporal leverage mechanism: redemption requests are earmarked and settled later. This keeps the funds earning yield longer and helps strengthen the peg of alETH and alUSD to their target prices.
No separate protocol fees or token rewards are part of the core yield mechanics. All returns come from the underlying strategies and from opportunities to profit when alAssets trade below their target value.
Persons
Ov3rkoalafied
Core Contributor
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Y-Audit15-03-2026 |
| The audit found no critical vulnerabilities but identified three high-severity issues related to liquidation logic, bad-debt accounting, and access control bypass, all of which were promptly addressed by the development team during the review period. |
Nethermind02-02-2026 |
| This security review reveals multiple critical and high-severity vulnerabilities in Alchemix's MYT vault strategies that could lead to fund loss, stuck assets, and protocol manipulation, requiring substantial remediation before safe deployment. The comprehensive findings indicate the codebase needs significant revisions to address fundamental design flaws and implementation errors across multiple strategy integrations. |
aleph_v16-12-2025 |
| The audit found only one low-severity issue related to dust account liquidation remediation, indicating the reviewed transmutation accounting system appears robust following prior bug fixes from the Immunefi contest. |
Immunefi01-01-2026 - 31-01-2026 |
| The audit competition uncovered a substantial number of vulnerabilities across all severity levels, indicating rigorous testing by 298 researchers, though the summary report does not confirm whether these findings were addressed before deployment. The high volume of critical and high-severity issues suggests the codebase required significant security improvements. |
| The audit identified numerous high and medium severity issues, all acknowledged but none fixed at the time of reporting, indicating significant security concerns requiring remediation before production deployment. |
Legal
Status and notes
Official sources (alchemix.fi, docs.alchemix.fi, GitHub, forum) show "© 2020-2026 Alchemix Labs" in footer but no legal entity details disclosed. No terms/privacy pages accessible (404). No legal form, registration jurisdiction, or incorporation information found in first-party sources. Contact email [email protected] listed on GitHub. Governance documentation mentions multisig for v2 and planned on-chain DAO for v3.